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MNI BRIEF: New Drivers Fail To Offset China's Slowdown

MNI (Singapore)
(MNI)Beijing
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China's expansionary macro policy has proved less effective in boosting the economy and have not offset the economy's slowdown compared to traditional growth drivers, which have faded, said Wang Yiming, a member of the PBOC monetary policy committee during Global Wealth Management Forum on Thursday.

Chinese GDP will likely grow by over 5% y/y this year thanks to the low base effect, which means the average growth rate over 2022 and 2023 will reach about 4%, much lower than the potential growth rate of 5%-5.5%, Wang said, noting the economy had turned to a medium-speed growth period as the real-estate sector suffers big changes in supply and demand, traditional manufacture increase has peaked and big infrastructural projects have left limited space.

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China's expansionary macro policy has proved less effective in boosting the economy and have not offset the economy's slowdown compared to traditional growth drivers, which have faded, said Wang Yiming, a member of the PBOC monetary policy committee during Global Wealth Management Forum on Thursday.

Chinese GDP will likely grow by over 5% y/y this year thanks to the low base effect, which means the average growth rate over 2022 and 2023 will reach about 4%, much lower than the potential growth rate of 5%-5.5%, Wang said, noting the economy had turned to a medium-speed growth period as the real-estate sector suffers big changes in supply and demand, traditional manufacture increase has peaked and big infrastructural projects have left limited space.

Keep reading...Show less